The report points to ongoing, if moderate, job growth. Hiring averaged 174,000 jobs a month in 2016, according to ADP, down from an average of 209,000 in 2015.

The ADP data cover only private businesses and often diverge from official figures. Economists forecast that the government's jobs report, being released Friday, will show a gain of 173,000 jobs, according to data provider FactSet.